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HomeMy WebLinkAboutResolutions - 1970.07.02 - 16444r'itd ? 6-3-(a) THIS RESOLUTION IS WITH REFERENCE TO THE LAKE ORION EXTENSIONS OF Al.m.swommtagma....smosomme, THE CLINTON-OAKLAND SEWAGE DISPOSAL SYSTEM, AND IS TO APPROVE THE PLANS, SPECIFICATIONS AND AGREEMENT BETWEEN THE COUNTY AND THE VILLAGE. THE RESOLUTION HAS BEEN APPROVED BY BOTH THE BOARD OF PUBLIC WORKS AND THE PUBLIC WORKS COMMITTEE -- AND SINCE A COPY HAS PREVIOUSLY BEEN MAILED TO ALL MEMBERS OF THIS BOARD -- I RESPECTFULLY REQUEST THAT READING OF SAME BE WAIVED, AND MOVE ITS ADOPTION. on 674a7VC:14 the o'clock /9 .M., Eastern Standard Time, it was: day Of At a meeting of the Public Works Committee of the Board of Commissioners held at Moved by suppOrted by • C#40/13/S that the attached Resolution, having previously been approved by the Board of Public Works, is approved by this Committee and transmitted to the Board of Commissioners with the recommendation that same be adopted. Yeas: Nays: Absent: Motion rlinrfeafl . E./E'iank Richarfison Mahlon Benson, Jr. in the City of Pontiac, Michigan, on Thursday the 2nd day of Mr. :presented the following resolution, Horton At a regular meeting of the Board of Commissioners Of Oakland County, Michigan, held in the Commissioners' Auditorium in the County Service Center, , 1970, at 9:30 o'clock A. M. • Eastern Standard Time. PRESENT: PRESENT: Aaron, Bawden, Benson, Brennan, Coy,: Edwards, Gabler, Grbp, Hamlin, Horton, Houghten, Mainland, Mastin, Mathews, O'Brien, 0'Dono9hue, Olson, Patnales, Perinoff, Pernick, Powell, Richardson, Szabo, Walker, Wilcox. (25) ABSENT: 'Kasper, Richards. (2) 5434 Miscellaneous Resolution No Recommended by the Board of Public Works Clinton-Oakland Sewage Disposal System - Lake Orion Extensions July Re: a copy of which has been sent to each member of the Board of Commissioners. RESOLUTION PROPOSED BY OAKLAND COUNTY BOAPD OF PUBLIC WORKS NITU PE=CT :TO CLINTON-OAKTAND SAT, WHEREAS, the Oakland County Board of Public Works on June 15, 1970, did approve a form of Contract to be dated May 1, 1970, between the County of Oakland and the Village of Lake Orion for the extension of the Clinton-Oakland Sewage Disposal System to be known as the Lake Orion Extensions, and did authorize the Chairman and Secretary of the Board of Public Works to execute said Contract subject to the approval of this Board of Commissioners; and WHEREAS, the Village of Lake Orion is the only party needed to contract with the County for 100% Of the cost of the project; and WHEREAS, the said Contract is to be executed by the Village of Lake Orion; and WHEREAS, the Board of PubliO Works has submitted to this Board construction plans and specifications for the Clinton-Oakland Sewage Disposal System - Lake Orion Extensions, and estimates of cost and period of usefulness thereof, prepared by Hubbell, Roth & Clark, Inc., registered professional engineers, all of which have been approved by the Board of Public Works. NOW, THEREFORE, BE IT RESOLVED, that the Chairman and Secretary of the Board of Public Works be and they are hereby authorized and directed to execute and deliver on behalf of said County of Oakland, the Contract to be dated May 1, 1970, betn the County of Oakland and the Village of Lake Orion which reads as follows: CLINTON-OAYLAND SEWAGE DISPOSAL S PAINT CREEK INTERCEPTOR, LAKE -ORION EXTENSIONS CONTRACT THIS CONTRACT, made as of the 1st day of May, 1970, by and between the COUNTY OF OAKLAND, a Michigan county .7:pcation (hereinafter called the "county"), by and through its Board of Public Works (hereinafter referred to as the "hoard"), party of the first part, and the VILLAGE OF LAKE ORION, a village corporation in the County of Oakland (hereinafter called the "municipality"), party of the second part: WITNESSETH: WHEREAS, the Oakland County Board of Supervisors by Resolution Misc. No 4332, adopted on June 22, 1964, did approve of establishment of the Clinton-Oakland Sewage Disposal System to serve the Clinton-Oakland Sewage Disposal District, within which district lies all of the m=icipality; and WHEREAS, Act No, 185 of the Michigan Public Acts of 1957, as amended, grants to the beard. of public works in any county having a department of public Works, the power to ar,auirr, sewage disposal systems as defined in said Act and to improve, enlarge and extend any system acquired pursuant thereto; and WHEREAS, the County of Oakland, through its Board of Public Works, is acquiring and constructing the said Clinton- Oakland Sewage Disposal System purst to the Amended Clinton Oakland Sewage Disposal System Co. mat, dated January 11, 1962, between the County of Oakland and the Charter Township of Waterford, the Township of Avon, the Township of West Bloomfield, the Township of Independence, the Township of Orion, and the Township of Pontiac, (said contract_ hereinafter referred to as the "Base Contract"); and WHEREAS, the municipality is a party to the Clinton- Oakland Sewage Disposal System Paint Creek Interceptor Contract, dated as of January 15, 1969, between the County of Oakland and the Township of Oxford, the Township of Orion, the Township of Avon, the Township of Oakland, the Village of Oxford, and the Village of Lake Orion, (said contract hereinafter referred to as the "Interceptor Contract") pursuant to which contract the county is acquiring the Paint Creek Interceptor to serve the said munici- palities and certain of said municipalities acquired capacity in the Clinton-Oakland Sewage Disposal System; and WHEREAS, by the terms of said Act No, 185 the county and the municipality are authorized to enter into a contract for the acquisition, improvement, enlargement or extension of a sewage disposal system and for the payment of the cost thereof by the municipality with interest, over a period not exceeding forty (40) years, and the county is then authorized, pursuant to appropriate action of its Board of Commissioners, to issue its bonds to provide the funds therefor, secured by the fUll faith and credit con- tractual obligation of the municipality, and upon affirmative vote of three-fifths (3/5ths) of the members elect of the Board of Commissioners, by the full faith and credit pledge of the county; and WHEREAS, it is now necessary for the public health and welfare of the present and future residents of the municipality to extend, improve and enlarge the said Clinton-Oakland Sewage Disposal System and the Paint Creek. Interceptor in the municipality by the acquisition and construction of the so-called Lake Orion Extensions under the provisions of said Act No 185 and to issue one or more series of county bonds tofinance said Lake Orion Extensions in anticipation of the collection by the county of amounts to become due from the municipality under this contract between the county and the municipality; and WHEREAS, no other municipality in the Clinton-Oakland Sewage Disposal District will be affeCted by the construction of said Lake Orion Extensions; and WHEREAS, in order to issue such bonds, it is necessary that the county and the municipality enter into this contract. NOW, THEREFORE, in consideration of the premises and the covenants of each other, the parties hereto agree as follows: . The county and the muni pality hereby approve the extension, improvement and enlargement of the Clinton-Oakland Sewage Disposal System and the Paint Creek Interceptor by the acquisition and construction of sewage disposal facilitiesto serve the municipality, under and pursuant to the -provisions of Act No 185 of the Michigan Public Acts of 1957, as amended- The sewage disposal facilities to be acquired and constructed are hereby designated the "Lake Orion Exensions of the Clinton- Oakland Sewage Disposal System." 2. The facilities constituting the entire Lake Orion Extensions project and th e ir 7eni7:ral location within. the municipality are shown on Exhibit "A" which is attached hereto and by this reference is made a part hereof. The Lake Orion Extensions of the Clinton-Oakland Sewage Disposal System are hereafter some- times referred to as the "project". 3. The county and the municipality hereby approve and adopt the estimate of the total cost of the project in the amount set forth on Exhibit "B" attached hereto, and the estimate of 40 years and upwards as the period of usefulness of the project, all as prepared by the consulting engineers. 4. After the execution of this contract by the county and the municipality, the board shall take the following steps: (a) Order final plans and specifications for the project from the consulting engineers.. (b) Submit to the Board of Commissioners of Oakland County a resolution, duly approved and recommended by the Board, providing for the issuance of bonds in one or more series in the aggregate principal amount necessary to finance the acquisition of the project as shown en Exhibit "B" or such different amount reflecting any revision in the estimate of the cost of the project as may be agreed upon by the parties hereto, or reflecting the amount of other funds available to pay the cost of the project, maturing serially as authorized by law, over a period of not to exceed forty (40) years, which bonds will be secured primarily by the payments hereinafter provided to be made by the municipality, to the making of which its full faith and credit is hereby pledged, and secondarily, if approved by a three-fifths (3/5ths) majority of the members elect of the Board of Commissioner's, by the full faith and credit of the County of Oakland. Cc)After the Board of Commissioners of Oakland County has adoted the bond resolution, the board will take all necessary procedures to obtain the approvals necessary to the issuance of the bonds: by the Municipal Finance Commission of the State of Michigan, obtain construction bids for the project. and enter into construction contracts with the et responsible bidders, and sell and deliver the bonds in the manner authorized by law. (d) After the issuance of! said bonds and the exe- cution of conetructiot contracts, the board shall cause the project to be constructed within a reasonable time and do all other things required of Act No. 185 of the 1957, as amended under the provisions of Public Acts of Michigan, it 5. It is understood and s -qcoed by the parties hereto that the project is to serve the municipality and not the indivi- dual property owners and users thereof, unless by special arrangement between the board and the municipality. The respons- bility of requiring c .eitin, to and use of the far'iliies of project and of providing such additinal facilities, as may be needed, shall be that of the municipality which shall cause to be constructed and maintained, directly or through the county, any SUCH necessary additicnt. facilities The county shall not-be obligated to acquire or conIstruct any facilities other than those designated in paph 2 hereof. The pro,lect is an improvement, enlargement and extension of the Clit,o -n-Ckl'Ind Sewage Disposal System and the Paint. Creek Interceptor am', the Base Contract and the Interceptor Contract_ shall applythsreto except as the same may be specifically modified herein for specific application to the project, and, in pal:ti•ular the of para graphs 9, 10, 11 and 16 through 24 of the Base Contract and raragrarJhs 10 and 11 of the Interceptor cerfrt set forth in full herein, shall apply hereto as though The county hereby agrees that it will secure, or cause to be secured, and maintained dcri sq tho period of construction adequate property damage and public 'liability insurance covering all facilities to be constructed to this contract. All policies of insurance shall .nrovide 4ibLat cipality shall be insured, provision requiring that the munici .•llt ten days prior to cancellation th ,,-,rf of insurance shall be filed wit county and the muni- shall contain a be notified at least Ono copy of each. policy .pali by and 7 6. The municipality shallpay to the county the entire cost of the project, The term "cost as liF:ted herein shall be 1=e construed to include all items of 7.7)7t of the se.17- fo-rfl-,. On J. „, Exhibit "B" attached hereto and any other • items of cost. of a similar nature as may be set forth in any revision of said Exhibit 'B" agreed to by the parties hereto, incurred by the county in acquiring and constructing the project. The cost of the project will be represented by one or more series of bonds to be issued by the county as provided in paragraph 4 in the aggregate principal amount not to exceed the cost of the project, or any portion thereof, as determined or estimated at the time or times of such issuance. The municipality covenants and agrees to remit the principal and interest payments on said bonds so issued and the paying agent. fees and other charges to service said bonds (herein called "bond service charges"), as hereinafter provided, which interest payments shall be determined by applying to said principal payments therate or rates of interest borne by the county bonds when sold and delivered, Shown on Exhibit "C" is the schedule of annual principal payments to be made by the municipality, Immediately upon the issuance of said bonds by the county to finance the cost of the project or any part thereof, the board shall notify the municipality, by written communication addressed to its treasurer, of the schedule of payments of the principal of and interest on the bonds so issued and of the bond service charges to be paid by the municipality. The municipality hereby covenants and agrees, rot less than thirty (30) days prior to the due date of any principal of or interest on such bonds, to remit to the county sufficient funds to pay the same along with any bond service charges then due, The obligations herein expressed shall be applicable to all bonds issued by the county to construct and complete the project, or any part thereof, whether issue,f. at one time or more than one time— It is assumed that the ago. other source to pay the cost of the project or any portion principal amount of all bonds issued will represent the cost of the project. If funds are available from the municipality or mu prior to the issuance of bonds, then the obligation of the munici- pality shall be adjusted and limited ,o,,ccerdinglv. If the municipality shall fail to make any of such payments when duo, the amount there- of shall be subject. to a penalty of one-half of one percent (1/2 of 1%) for each month or fraction thereof that the same remains unpaid after the due date. The municipality may pay in advance of maturity all or any part of an annual installent due the county, (1) by surrendering to the county, bonds issued hereunder of a like prin- cipal amount maturing in the same calendar year, with all future due interest coupons attached thereto, or (2) by payment in cash of the principal amount of bonds to be called plus all interest to the first day on which snob amount of bonds can be called and the amount of premium and ch bonds OP such, dat necessary to call such amount of 7, Alter com,7,1eti.on of the r/r0 -1 F'r'17 and paymsnt of all costs thereof, any surolus remanin.sfrom the sale of the bonds therefor shall be used to call such bonds as are callable or to purchase bonds on the open market and in such event the con- tractual obligation of the 7.o.lcipalty in respect to the project shall be reduced. by the prinotral amount of bonds so called o r purchased, said reduction to be applied as to year, in accordance with the year of the maturity of the bonds so called or Any bonds so called or pirrc'7.ad shall be cancelled, In the alternative, said surplus may be at the request of the :1 ,.;.i- cipality and upon approval by the Oakland County Board of Commissioners, to improve, 'enlarge or e7,-tend the pro,,7:ct, 8. If the proceeds of the sale of the original bonds to be issued by the county to finance the project, or any part thereof, are for any reason insufficient to complete the project in accordance with the plans and specifications therefor, the board shall, if necessary, submit to i the Board of Commissioners of Oakland County a resolution providing for the issuance of additional bonds in an amount. necessary to provide funds to complete the 1:,ro- ject in which event the duties and obligations of the beard and the municipality as expressed and set forth in this contract shall be applicable to such additional issue Of bonds as well as the original issue, it being at all times fully recognized and agreed that the payments to be made by the municipality, in the manner specified in paragraph 6 of this contract, shall be based upon the egg gate amount of the bonds outstanding. InHlieu of the issuance of such additional bonds, any other method may be agreed upon by the county and the municipality to provide the necessary funds to complete the project. 9. The municipality, pursuant to the authorization of paragraph (2), Section 12 of Act 185, Public Acts of Michigan, 1957, as amended, does hereby pledge its full faith and credit for the prompt and timely payment of its obligations expressed in this contract and shall each year, commencing with the year prior to the year that it will first be required to make payments to the county in accordance with the provisions of paragraph 6 of this contract, levy a tax in an amount which, taking into consideration estimated delinquencies in tax collections, will be sufficient to pay its obligations under this contract becoming due before the time of the following year's tax collections PROW:ULO, HOWEVER, that if at the time of making such annual tax: levy there shall be other funds on hand earmarked and set aside i for the payment of such contractual obligations falling due prior to the next tax collection period, then the annual tax levy may be reduced by such amount. Such other funds may be raised in the manner provided in said paragraph (2), Section 12 of Act 185, Public Acts of Michigan, 1957, or any amendments thereto, 10, This contract is contingent upon the county issuing its negotiable bonds as set forth in subparagraph (b) of paragraph 4 of this contract, to defray the estimated cost of the project, or a part of the project, which bonds shall be issued under the authorization provided in paragraph (--,1), subparagraph (b), Section 11 of said Act 185, Public Acts of Michigan, 1957, as amended. 11. The municipality consents to the establishment and location of the project within its corporate limits and consents to the use of the streets, alleys and public places of the muuici pality for the location, construction, repair, replacement, main- tenance and use of the sewage disposal facilities of the project. After completion, the project shall be used for the collection of sanitary sewage within the municipality and the transportation of said sanitary sewage through the Paint Creek Interceptor to the Clinton-Oakland System for ultimate disposal. Upon completion of the project the county hereby leases the facilities constituting the project to the municipality during the term of this contract, upon the following terms and conditions: (a) The facilities shall he used and operated by the municipality in compliance with all n_ contractual and legal obligations applicable to the municipality. The municipality shall employ qualified and competent personnel to operate the facilities hereby leased. (b) The municipality, at its own expense, shall maintain said facilities in good condition and repair, to the satisfaction of the Board of Public Works, The Board of Public Works shall have the right to inspect the said facilities at any time and if said facilities or any part thereof are not in a state of good condition and repair, then the Board of Public Works shall notify the municipality in writing as to any deficiency. If the muni- cipality shall fail to restore the facilities to a good condition and repair within a reason- able time thereafter, then the Board of Public Works shall have the right to perform the necessary work and furnish the necessary , materials, and reimbursement for any expense incurred by the county shall be made by the municipality to the county within thirty (30) days after the expense has been incurred. (c) The municipality shall adopt and continue in existence and shall enforce an ordinance or ordinances concerning the connections of premises in the municipality to the facilities and concerning the use of and the payment of charges for the use of the facilities. -1 1 - (d) The municipality shall make and collect from the individual users Of the facilities such charges for sewage disposal service as shall be sufficient to pay the cost of the opera- tion and maintenance Of the facilities, the cost of sewage disposal charges required to be paid by the municipality, and to establish suitable reserves foroperation and maintenance. Such charges may also include an amount deter- mined by the municipality to be used to meet the obligations of the municipality to the county under this contract the Base Contract and the Interceptor Contract. The municipality shall enforce prompt payment of all such charges as the same shall become due. (e) The municipality shall secure and maintain adequate property damage and public liability insurance covering all facilities hereby leased to it by the county. All policies of insurance shall provide that the municipality and the county shall be insu d parties thereunder and shall contain a provision requiring that the Director of the Oakland County Department of Public Works be notified at least ten days prior to cancellation thereef. One copy of each policy of insurance shall be filed with the Oakland County Department of Public Works. The municipality agrees to Hlease the projectfrom the county upon the foregoing terms and conditions and for the period, contract, will have contractual in this contract and it is LL1 of this contract and agrees to pay the sum of $1,00 per year on January 1st of each year commencing January 1, 1972, and in addition to perform its covenants and agreements set forth in this contract as a rental for said project 12. The county and the municipality recognize that the holders from time to time of the bonds issued by the county under the provisions of said Act 195, Public Acts of Michigan, 1957, as amended, and secured by the full faith and credit pledge of the municipality to the making of its payments as set forth in this therefore covenanted and agreed by each party that so long as any of said bonds shall remain outstanding and unpaid, the provisions of this contract shall not be Oct to any alteration or revi 7 sion which would in any manner affect either the security of the bonds or the prompt payment of principal or interest thereon , The municipality and the county further covenant and agree that they will comply with their respective duties and obligations under the terms of this contract pror:ctly, at the times and in the manner herein set forth, and will not suffer to be done any act which would in any way impair the said bonds, the security therefor, or the prompt payment of principal and interest thereon, It is hereby declared that the terms of this contract in as far as they pertain to the security of any such bonds, shall be deemed to be for the benefit of the holders of said bonds, 13. This contract shall become effective upon approval by the legislative body of the municipality, by the Board of Public Works of Oakland County, and by the Board of Commissioners of Oakland County, and duly executed by the authorized officers of the municipality and of the Board of Public Works. It shall terminate fifty (50) years from the date of this contract. This contract may be executedin several counterparts. The provisions of this contract shall be in full force and effect and binding upon the successors and assigns of the parties hereto. IN WITNESS WHEREOF, the parties hereto have caused this contract to be executed and delivered by their respective duly authorized officers, all as of the day and year first above written. COUNTY OF OAKLAND By Its Board of Public Works By Chairman Secretary VILLAGE OF LAKE ORION By President_ Village Cler By 550 SOUTH TELEGRAPH ROAD PONTIAC, VUCHGA,N CLINTON-OAKLAND SEWAGE DISPOSAL SYSTEM LAKE ORION EXTENSIONS OAK AND COUNTY DEPARTMENT OF PUBLIC WORKS -)1 970 - \ (...) n_ A v („; 0 L.; I 1 550 SOUTH TELE GLlP H ; im A r"-, P A C 970 ; : 5,322 5,ozao 2,840 40,907 27,031 302 12 441 ] 0/0 0,140 3,250 „ T Each ha oh ha oh Each Each -Fach Each T T F, T F. 85,2.'0.00 870,40-..00 24,030,00 2 1 1,. 0: 132,030.00 12,030.00 9 1,000.(00 01,000.00 8,040.50 31,4°0.30 = $9,659,6 133,2.33 16,47.0C 22 27.3 51,04022 53,000.00 7,00C,00 3,420.00 = 260.,95-9,00 = $3 , 40'7 ,2}0 . Less State of Michigan grant ba ,-,Ler on eligible costs (:‘,/ra.:7171 --TA, . . :7'' u u u =$') CT .T "NTT° Ni-OAT-(7- ; @ !@, (7- @ C.) 18" Sr,il.a:.ity Sawar 15" Sanitary Sc7.7.Z7 12" Snitary Sewer 10" Sanitary .-,A7cr 8" Sanitary Sewer 6" House Lead Railroad Crossings Manholes 30 GPM, Sov,771,., Electors 60 GPM, Sewage Ejector 150 GPM, Pumping Station 2.00 G17'"Nli 250 GPM, F-J.mpirig 8" Force Main 6" Force Main 4" Force Main 34. 00 40, 0 C 35.00 30.00 28.00 14.00 12 , 090 00- 7%3 00 16,00 0,000 18,000,00 26,3.05.90 31 , j0 , ULJ 0 12.00 10.00 8. 00 Station Station Total Construc tion „ 3 y , 6 5 9', Q , v Project Cost Construction . rrr Adrnin." "iVe Leg-al and Financial Ins pe ction. Las':- ..0 Aocisbsiticn. Purchase P -71-np Station Sites Soil Borings . Legal Fees, Taxpayers Suit „ • Co-ntin,c;onoy Capitalized Intcrest, 7% for 18 months on $2,690,000,00 Bond Issue Total Proiect Cost ,.5L) Iuse%:i ne ss 4 " .LOL,J.L.I.L i to be F orty - , April 20, 1970 CLINTON-OAKLAND SEWAGE DISPOSAL SYSTEM LAKE ORION EXTENSIONS Schedule of Annual Principal Payments Year Principal 1974 $ 40,000 1975 50,000 1976 50,000 1977 50,000 1978 50,000 1979 50,000 1980 50,000 1981 50,000 1982 75,000 1983 75,000 1984 75,000 1985 75,000 1986 75,000 1987 100,000 1988 100,000 1989 100,000 1990 100,000 1991 100,000 1992 125,000 1993 125,000 1994 125,000 1995 150,000 1996 150,000 1997 175,000 1998 175,000 1999 200,000 2000 200,000 $2,690,000 EXHIBIT "C" Alai-L-1/y W ;11-lort on , 7 C'nair an - 4- /. i :-/ i _ Mahlon Benson, Jr. / 6/ ripll M. Richards E ,/Frank Richadson '4.b.mes „DA. Brennan Thomas H. O'Donoghue 9 ••••.. • , - / BE IT '',:J"RT RE$OLVED., that the officers of the Board of Public -07,rks ar to execute and delive -z n! of original copies of said Contract as they may deem aclvisable, BE IT FURTHER RESOLVED, that the said construction plans and specifications and estimates of cost and period of usefulness be approved and the County Clerk is hereby authorized to enclose on said pans and specifications and estimates the fact of such approval and return same to the Board of Public Works, PUBLIC WORKS COMMITTEE- Mr, Horton moved the adoption of the foregoing resol4tion. The motion pportod y Mr. 0 Donoghue On roll call the resolution was adopted by the following vote; AYES: Mainland, Mastin, Mathews, O'Brien, O' Donoghue, Olson, Patnales, Perinoff, Pernick, Powell, Richardson, Szabo, Walker, Wilcox, Aaron, Bawden, Benson, Coy, Edwards, Gabler, Grba, Hamlin, Horton, Houghten, (24) NAYS: Brennan. (1) ABSENT: Kasper, Richards. (2) Nays: Absent: County Clerk of the County Oakland, do hereby certify that the ....a 4_ at a Regular missioners, held on the 2nd day of 1970, the July official signature this 2nd day of , A.D. 1970, July STA7E OF MICHIGAN ) ) COU-::,-7Y OF OAXLAND ) I, the undersigned, the duly qualified and acting foregoing is a true and complete copy of a resolution adopted meeting of the Oakland County Board of Com-: - original of which is on file in my office. IN WITNESS WHEREOF, I have hereunto affixed my Lynn D. Allen, County Clerk